Section 257Q — Income Tax Act 2007: Effect of the investor receiving value from the social enterprise

Effect of the investor receiving value from the social enterprise 257Q 1 If the investor receives any value from the social enterprise at any time in the longer applicable period, any SI relief given in respect of the investment must—

a if it is greater than the amount given by the formula set out in subsection (2), be reduced by that amount, and b in any other case, be withdrawn.

2 The formula is— V × R where— V is the amount of the value received, and R is the SI rate for the tax year for which the SI relief was given.

3 Subsections (1) and (2) are subject to—

a section 257QA (value received: insignificant receipts),

b section 257QB (value received where there is more than one issue of investments),

c section 257QC (value received where part of investment treated as made in previous tax year),

d section 257QD (cases where maximum SI relief not obtained),

e section 257QG (receipts of value by and from connected persons etc ),

and f section 257QH (receipt of replacement value).

4 Sections 257QB to 257QD are to be applied in the order in which they appear in this Part.

5 Value received is to be ignored, for the purposes of this section, so far as SI relief attributable to the investment has already been withdrawn or reduced on its account.

6 For the purposes of this section and sections 257QA to 257QI, an individual—

a who acquires any part of the investment, and b who does so on such a transfer as is mentioned in section 257T (spouses or civil partners), is treated as the investor.